Cincinnati Bell Meets on Revenues, Misses on EPS

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Cincinnati Bell (NYS: CBB) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cincinnati Bell met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP loss per share expanded.

Margins contracted across the board.

Revenue details
Cincinnati Bell reported revenue of $365.3 million. The eight analysts polled by S&P Capital IQ predicted revenue of $370.7 million. GAAP sales were 0.7% higher than the prior-year quarter's $362.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.03. The eight earnings estimates compiled by S&P Capital IQ averaged $0.06 per share on the same basis. GAAP EPS were -$0.17 for Q4 compared to -$0.10 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 52.2%, 40 basis points worse than the prior-year quarter. Operating margin was 19.8%, 30 basis points worse than the prior-year quarter. Net margin was -8.3%, 320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $366.6 million. On the bottom line, the average EPS estimate is $0.07.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 108 members out of 119 rating the stock outperform, and 11 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Cincinnati Bell a green thumbs-up, and one give it a red thumbs-down.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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